CINCINNATI, Oct. 19, 2010 (GLOBE NEWSWIRE) -- Attorney Advertising
The law firm of Statman Harris & Eyrich, LLC, which has significant experience in class actions, announced today that it is investigating Meta Financial Group, Inc. ("Meta Financial Group" or the "Company") (Nasdaq:CASH) for potential violations of state and federal law. Meta Financial Group operates as the holding company for MetaBank (the "Bank") and Meta Trust Company, which provide various financial products, including prepaid cards and consumer credit products, professional trust services, and other payment industry products and services.
The firm's investigation was triggered on October 12, 2010, when Meta Financial Group filed an 8-K with the U.S. Securities and Exchange Commission disclosing that the Office of Thrift Supervision ("OTS") had determined that the Bank, a wholly owned subsidiary of the Company, had engaged in unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission Act and the OTS Advertising Regulation. The OTS determined that the violations had arisen in connection with the Bank's operation of the iAdvance program, and required the Bank to discontinue all iAdvance line of credit origination activity by October 13, 2010.
The 8-K also disclosed that the Bank had previously received Supervisory Directives from the OTS on August 31, 2010 and October 6, 2010. The directives, which were based on the OTS's assessment of the Bank's third-party relationship risk, enterprise risk management, and rapid growth, require the Bank to obtain the prior written approval of the OTS Regional Director to:
- enter into any new third party relationship agreements concerning any credit product, deposit product (including prepaid access), or automatic teller machine or materially amend any such existing agreements (except for amendments to achieve compliance with applicable laws and regulations) or publicly announce any new third party relationship agreements or material amendments to existing agreements;
- originate, directly or through any third party, income tax refund anticipation loans or other loans where the expected source of repayment is a tax refund; and
- offer an income tax refund transfer processing service directly or through any third party during the 2011 tax season.
Neither of the OTS directives were publicly disclosed until October 12, 2010.
As a direct result of this news, on October 13, 2010, Meta Financial Group's stock fell to $22.25 per share, a decline of over 33% on unusually high trading volume.
Shareholders who purchased Meta Financial Group stock between August 31, 2010 and October 12, 2010 may have a claim against the Company and are encouraged to contact attorney Melinda Nenning at (513) 345-8181, Ext. 3095 or mnenning@statmanharris.com for further information without any obligation or cost to you.
Statman, Harris & Eyrich, LLC has offices in Chicago, Illinois; Cincinnati, Ohio; and Dayton, Ohio. www.statmanharris.com
CONTACT: Statman, Harris & Eyrich, LLC Melinda S. Nenning, Esq. (513) 345-8181, Ext. 3095 mnenning@statmanharris.com 441 Vine Street, Suite 3700 Cincinnati, Ohio 45202